Christian and Sons\' static budget for 9,528 units of production includes $43,13

Question

Christian and Sons' static budget for 9,528 units of production includes $43,137 for direct materials, $54,981 for direct labor, utilities of $7,827, and supervisor salaries of $14,990. What would flexible budget show for 13,375 units of production?

Select the correct answer.

direct materials of $60,554, direct labor of $77,180, utilities of $10,987, and supervisor salaries of $14,990 total variable costs of $120,935 direct materials of $43,137, direct labor of $77,180, utilities of $7,827, and supervisor salaries of $14,990 the same cost structure in total

Explanation / Answer

ANSWER IS 1

direct materials of $60,554, direct labor of $77,180, utilities of $10,987, and supervisor salaries of $14,990

DIRECT MATERIAL = (43147/ 9528 )*13375 = 60554

direct labor = (54981/9528 )*13375 = 77180

utilities of $10,987

supervisor salaries of $14,990

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